Hide your money and no I do not mean under your bed or in your ceiling tiles. I am talking about putting your money in separate bank accounts outside of your main bank checking and savings accounts. We want it to be a hassle to access this money. We hide this money as soon as we receive it or before we can get our hands on it. We want to forget this money exists and live below our means. How we do this is very easy but can take a little time to research.
Every paycheck, Sam and I take 30% and hide it into some type of investment. Most recently, we have been buying more stocks, but shortly we are going to switch it into real estate. On top of that, we take our 10% for vacations and put that into an Ally savings account, so we know we won’t touch it. There are a few different options for hiding your money, and what you want for the future of that money can depend on what you put it towards.
The first and easiest thing to do is to sign up for a high yield savings account at a different bank than your own. Right now the interest rates are pretty low, typically .5% right now. However, when I first signed up for them and before Covid-19, I was receiving 2.2% interest on my savings account. This account helps with inflation, so you can stick your money here and it will at least grow at a higher rate than sticking it in a checking account or most bank’s savings accounts. Choose a high yield savings account outside of your normal banks. I bank with US Bank and Westconsin CU, so I started an Ally Bank high yield savings account. I will not open any other accounts with Ally and here is why. You want this money completely separated from your other money. It takes an average of 5 days to transfer money in and out of this account. This is a very good thing, this means you cannot access this money to make compulsive purchases.
Other options where you can hide your money, are a 401k, an IRA, a HSA, Robinhood, Webull, M1 Finance, or some other form of retirement account. These options allows you to hide your money in the stock market, but this will take some research. Otherwise, find a financial advisor who you trust and can help you. This is good because you are investing in your future and it makes it difficult to access this money.
Next option is hiding your money in real estate. This is a good option because you can receive monthly cash flow from this asset. Which you can then hide more money into all of these categories. This is also the hardest money to access, which is a huge perk. Accessing the money you have invested in real estate will take quite a few hurdles and that is our goal here!
Once you hide your money DO NOT TOUCH IT! The only time you should access this money is if it is part of the plan (retirement) or there is a massive emergency and it is one of your last options (A new car, new clothes, new house, etc. are NOT emergencies). Act like this money does not exist, if you need more money for something, go make more money. Remember, the more hurdles you can put between you and your money, the better.
Why hiding your money is good for you.
- You are working towards a greater goal
- You are investing in your future
- You are living below your means
- You get the reward and gratification of saving and investing your money
- You build your self-discipline
- You become more resourceful and less wasteful
All of these things stack on each other to help you reach your full potential in your financial life. Along with building disciplines that can flow into other parts of your life!
Hide your money everyone!
Your Life Tutor
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